Microsoft and others report their stake in Open AI as net income. Open AI and others revenue comes in large part from large customers like Microsoft. Nvidia makes large investments into Open AI, SpaceX, and core weave and in return they buy Nvidia hardware. It is all very circular. And at the same time it appears these companies have near zero moat. I think it is foolish to not question how big this business really is. Seemingly no one knows.
Surely AI is a thing that is here to stay, but I am not at all convinced that the big frontier models are going to be able to return their investment and if it becomes apparent they cannot, then you are almost certainly going to see a massive correction.
I mean obviously everything being equal, a firm with 10x more developers might spend 10x. But why is that noteworthy, and why does that enter the estimation of how large the industry is? It might enter the calculation of how much pricing leverage openAI and anthropic might have, but that's not what he actually said, he talked about the industry size.
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Microsoft and others report their stake in Open AI as net income. Open AI and others revenue comes in large part from large customers like Microsoft. Nvidia makes large investments into Open AI, SpaceX, and core weave and in return they buy Nvidia hardware. It is all very circular. And at the same time it appears these companies have near zero moat. I think it is foolish to not question how big this business really is. Seemingly no one knows.
Surely AI is a thing that is here to stay, but I am not at all convinced that the big frontier models are going to be able to return their investment and if it becomes apparent they cannot, then you are almost certainly going to see a massive correction.
Could you provide a citation for this?
I mean obviously everything being equal, a firm with 10x more developers might spend 10x. But why is that noteworthy, and why does that enter the estimation of how large the industry is? It might enter the calculation of how much pricing leverage openAI and anthropic might have, but that's not what he actually said, he talked about the industry size.